I just got off the phone with a SVP at a national BPO/Appraisal company we work for. Government agencies and national lenders are "ghost shopping" their approved appraisers.
Here is apparently how it works.
Jim the Appraiser conducts a series of valuations and they seem a little high. Brokers are hired to do BPO's to confirm value. If there is a pattern of pushing the value, at a minimum the appraiser looses the client.
It has been hinted that brokers are also being used, through some national BPO compaines, to build evidence against appraisers where complaints have been filed.
I suspect this has been going on for some time, but confirmation is now in.
Richard F. Kruse is the President of Columbus, Ohio based Gryphon USA, Ltd. (www.gryphonusa.com). The Gryphon Organization includes Gryphon Asset Management providing receivership and consulting services in the distressed marketplace, United Country Ohio Realty & Auction Group (www.ucohiorealty.com & www.ucohioauctions.com) providing real estate brokerage and auction services throughout Ohio and OnlineAuctionUSA.com (www.onlineauctionusa.com) providing commercial asset liquidations from the Midwest to East Coast.
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